Supply and demand
This presentation is the property of its rightful owner.
Sponsored Links
1 / 14

Supply and Demand PowerPoint PPT Presentation


  • 45 Views
  • Uploaded on
  • Presentation posted in: General

Supply and Demand. Supply. As the price of a good or service that producers are willing and able to offer for sale during a certain period of time rises (or falls), the quantity of that good or service supplied rises (or falls). . Demand.

Download Presentation

Supply and Demand

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Supply and demand

Supply and Demand


Supply

Supply

  • As the price of a good or service that producers are willing and able to offer for sale during a certain period of time rises (or falls), the quantity of that good or service supplied rises (or falls).


Demand

Demand

  • As the price of a good or service that consumers are willing and able to buy during a certain time period rises (or falls) the quantity of that good or service demanded falls (or rises).


Supply and demand

  • Equilibrium- price at which the quantity demanded by buyers equals the quantity supplied by sellers

  • At this price every buyer finds a seller and every seller finds a buyer


Supply and demand

  • Surplus- quantity supplied of a product exceeds the quantity demanded

  • Price of a product is above the market equilibrium price


Supply and demand

  • Shortage- quantity demanded for a product exceeds the quantity supplied

  • Price of a product is below the market equilibrium price


Hula hoops and silly bandz

Hula Hoops and Silly Bandz

  • www.youtube.com/watch?v=Ng3XHPdexNM

  • How does this video show the connection between supply and demand?


Supply and demand

  • http://abcnews.go.com/Nightline/video/silly-bandz-latest-fad-11686769

  • www.usatoday.com/money/smallbusiness/2010-07-01-sillybandz01_CV_N.htm

    How do these videos show the relationship between supply and demand?


Supply and demand

What is the relationship between producers and consumers?

Prices are used in the market to help producers and consumers communicate with each other.


Supply and demand

  • Changes in demand for consumer products can shift tremendously over short time periods.

  • Video clips show how prices are changed in response to demand.


Supply and demand

  • Prices will rise or fall based on the supply and demand for goods and services.

  • The change in demand for Hula Hoops initially decreased the price due to the lack of demand.


Supply and demand

  • Demand skyrocketed for Hula Hoops and led to a large increase in the price level- consumers wanted to buy and were willing and able to pay more for the toy.


Supply and demand

  • Silly Bandz- producer was sensitive to the idea of raising the price for the product- part of the marketing strategy was to be a cheap alternative to video games and other expensive toys


Supply and demand

  • If there is an unwillingness to raise prices, excess demand can only be met with increasing the supply- includes substitute brands entering the market and gathering market share.


  • Login